Residential Market Commentary - Week of October 12, 2015
Oct 15, 2015, 13:28 PM
With concerns growing about foreign ownership driving Canadian real estate prices out of reach there is word non-resident buyers could be looking to new markets.
A recent report compiled by the Urban Land Institute and the consulting firm PwC says Vancouver and Toronto will both remain attractive to foreign buyers despite their high prices. But the report points to two factors that could have foreign buyers looking elsewhere: the low loonie and falling oil prices.
Canada’s low dollar should benefit the manufacturing sector based in Ontario and Quebec. With manufacturing poised for growth, Montreal and areas outside the GTA could look more attractive to foreign investors.
Weak oil prices have already had an impact on real estate in Calgary and Edmonton as buyers, foreign and domestic, take a wait-and-see approach or look elsewhere.
The report also suggests high prices in Vancouver and Toronto could slow the pace of urbanization in those markets as first time buyers look elsewhere for affordable homes.